- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 4. Analyzing Statements of Cash Flows I
- Subject 6. IFRS and US GAAP Differences
CFA Practice Question
Which statement is CORRECT regarding presentation choices permitted in IAS 7?
B. Interest paid must be classified as financing cash flows.
C. Interest paid may be classified as either operating or financing cash flows.
A. Interest paid must be classified as operating cash flows.
B. Interest paid must be classified as financing cash flows.
C. Interest paid may be classified as either operating or financing cash flows.
Correct Answer: C
IAS allows the choice of operating or financing for interest paid or received.
User Contributed Comments 2
| User | Comment |
|---|---|
| Inaganti6 | Under US GAAP it's only CFO ? |
| r3v3r3n6o | Yes, only CFO under US GAAP. |